- Europe’s drugmakers have warned they will stop making some cheap generic drugs amid rising electricity costs.
- The generics industry lobby group, Medicines for Europe, represents Teva Pharmaceutical Industries Ltd TEWA, of Novartis AG NVS Sandoz unit and Fresenius SE FSNUY Kabi business sent a letter to the energy and health ministers of the European states and called for measures to cut costs.
- According to Medicines for Europe, generic drug associations are asking national health authorities for more flexibility in drug pricing, Reuters reported.
- According to the letter, electricity prices for some drug factories in Europe have increased tenfold and raw material costs have increased by between 50% and 160%.
- Adrian Van Den Hoven, Director General of Medicines for Europe, told Reuters: “Higher energy costs are simply eating away at all the margins of many manufacturers of essential medicines in the fixed price system we operate in Europe.”
- The report added that low-cost drugmakers typically sell off-patent drugs at prices set by national health authorities or insurance associations, which often lower prices as well.
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